Economics Study Set 4
Quiz 23: Aggregate Expenditure and Output in the Short Run
At Macroeconomic Equilibrium
At macroeconomic equilibrium, A) total investment equals total inventories. B) total spending equals total production. C) total consumption equals total production. D) total taxes equal total transfers.
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When aggregate expenditure is more than GDP,which of the following is true? A) There was an unplanned decrease in inventories. B) Firms spent less on capital goods than they planned. C) Households bought fewer new homes than they planned. D) All of the above must be true when aggregate expenditure is more than GDP.
In a small economy in 2011,aggregate expenditure was $800 million while GDP that year was $850 million.Which of the following can explain the difference between aggregate expenditure and GDP that year? A) Aggregate expenditure is always less than GDP in developed countries. B) Firm investment in inventories was less than anticipated in 2011. C) Firm investment in inventories was greater than anticipated in 2011. D) Aggregate expenditure is always less than GDP in developing countries.
Firms in a small economy planned that inventories would grow over the past year by $300,000.Over that year,inventories actually grew by $400,000.This implies that A) aggregate expenditure that year was less than GDP that year. B) there was an unplanned decrease in inventories that year. C) there was a planned decrease in inventories that year. D) aggregate expenditure that year was equal to GDP that year.
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